Industrial market vacancy remains at historic low amidst unprecedented supply chain issues
In the first three months of 2022, the Southern California industrial market remains historically tight as global supply chain issues and increased consumer demand have seen very little change from 2021. The overall vacancy rate, already one of the lowest in the U.S., ticked up 10 basis points (bps) over last quarter to just 1.6% regionwide. However, this is still down 150 bps from a total vacancy rate of 3.1% reported a year ago. Despite continued tight market conditions, the Southern California industrial market enters 2022 with a degree of uncertainty amid geopolitical concerns and a 40-year high in inflation that is a headwind for consumers and ultimately industrial demand.